Bitcoin (BTC/USD) is showing clear signs of weakness after forming a Higher High around the $118,233 zone and failing to hold upward momentum. The current setup on the 2-hour timeframe suggests a possible trend reversal or deeper pullback is underway.
🧠 Technical Summary:
Timeframe: 2H (Intraday-Swing)
Trend: Exhaustion at highs
Price Action: Breakdown from minor consolidation after failing to push new highs
Highlighted Feature: "Higher High" formed but with no follow-through – a classic bull trap signal
Current Price: ~$116,870
Target Support Zone: $114,000 – as marked clearly on the chart
🔍 Pattern Breakdown:
📌 Double Top/Lower High Structure: After a strong bullish run, BTC has failed to make a new sustainable high after forming a “Higher High.” This can indicate a weakening trend, often followed by a drop toward previous support levels.
📊 Volume: Volume is fading near recent highs, suggesting buyer exhaustion.
🔻 Bearish Arrow & “TARGET”: The red arrow and horizontal zone on your chart point to the $114,000 level, a clean support area where buyers may step in again. This is the logical target for any short-term pullback.
🔥 Recent Market Sentiment (July 2025):
BTC recently topped near $119,000, but broader market momentum has cooled.
Macroeconomic news (e.g., regulatory uncertainty, stablecoin news, and ETF outflows) have added short-term pressure on BTC.
Despite bullish fundamentals, technicals suggest a healthy retracement is necessary before any breakout continuation.
📉 Bearish Trade Plan:
Strategy Entry Zone Stop-Loss Take-Profit
Breakdown Sell Below $116,500 Above $117,300 $114,000 → $113,000
Rejection Short Near $117,500–$118,000 Above $118,500 $114,000
🛡️ Risk Management Tip:
The short bias is valid as long as BTC stays below the recent Higher High zone. A clean move above $118.5K would invalidate this idea and signal possible continuation to $120K+.
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